09 Oct 2018

The Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018 (hereinafter “Rule(s)”) was published in the official gazette on 10th September, 2018 which is effective from 02nd October 2018. According to the Rules, the Ministry of Corporate Affairs, Govt. of India (hereinafter “MCA”) has mandated that every unlisted public company shall issue its securities only in dematerialised form and shall dematerialise all its existing securities as well.>>

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21 Feb 2018

SEBI modified Foreign Portfolio Investment Norms

The SEBI, the capital market regulator in India had simplified and combined all portfolio investments under a common regulation in the year 2014 and collectively named them as Foreign Portfolio Investors (FPI). In terms of USD, net investments by FPI during 2016-17 both including in equity and debt was at USD 7,177 million demonstrating deep interest of foreign investors in Indian Capital Market.>>

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06 Feb 2018

Consultation Paper issued by SEBI, proposing to bring Amendments to the SEBI (Investment Advisers) Regulations, 2013

Securities and Exchange Board of India (SEBI) has issued a consultation paper on January 02, 2018 as a precursor, before introducing amendments to SEBI (Investment Advisers) Regulations, 2013. The primarily it intends to address the issue of “conflict of interest” while “advising” on investment products and simultaneously “selling” of investment products.>>

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09 Jan 2017

The Securities and Exchange Board of India (“SEBI”), the regulator of securities market in India, had during its meeting held on September 23, 2016, expressed concerns over compensation agreements and profit sharing agreements such as side agreements / reward agreements executed between private equity (“PE”) firms and top personnel and key managerial personnel (KMP) of listed entities. As per SEBI, when such agreements are executed without any prior approval of the shareholders, it could lead to unfair practices.>>

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26 Jun 2015

At its Board meeting held on June 23, 2015, SEBI approved the necessary changes in the Institutional Trading Platform (ITP) to simplify fund-raising by start-ups/new age companies. This is the logical outcome of the exercise initiated by SEBI on March 30, 2015 when it issued a discussion paper regarding a proposed alternative capital raising platform catering to start-ups/ “new-age” companies and invited comments from the public.>>

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10 Apr 2015

Congratulations if your start-up’s fund raising plan has met all the six qualifiers necessary under SEBI’s proposed alternative capital raising platform for start-ups/ “new-age” companies (see previous blog that contains Part 1). Now is probably a good time to take stock of the other regulatory requirements that SEBI is looking to impose under the alternative platform. Relax- the new requirements are less stringent! This blog compares the proposed requirements for raising capital under the alternative capital raising platform with those that apply under the normal route, i.e. in accordance with SEBI (ICDR) Regulations, 2009.>>

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02 Apr 2015

 On March 30, 2015, SEBI issued a discussion paper on a proposed alternative capital raising platform (http://www.sebi.gov.in/cms/sebi_data/attachdocs/1427713523817.pdf) specially catering to start-ups/“new-age” companies. This is definitely a positive step by SEBI as it potentially offers a regulatory regime where start-ups can realize better valuations like in jurisdictions such as USA or Singapore,which have a head start in terms of a more conducive regulatory framework for start-ups to raise risk capital.>>

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